61KN Westpac 24 S

RNS Number:8257G
Skandinaviska Enskilda Banken
7 March 2000


      SEB introduces an employee option-programme for 400 executives

The board of SEB has decided to expand its employee option programme. Group
Management received options. Now allocation will be made to four hundred leading
executives within the SEB Group. The employee option-programme follows the
taxation criteria set out in the taxation rules introduced on 1 July 1998 (SFS
1998:337).

The aim of the programme is to achieve commitment and interest in the
development of SEB's shares. Including the allocation of options to Group
Management, the number of allocated options in connection with the programme for
the year 2000 will be approximately 6,000,000. The general allocation will have
a value calculated at approximately 15 per cent of basic salary. The programme
is based upon existing shares. Therefore, there will be no dilution effect so
far as present shareholders are concerned. The option programme is secured in
such a way that future increases in the value of SEB shares will not affect the
cost of the programme for SEB.

As regards taxation, employee options are ranked on a par with salary.  This
means that the individuals concerned will be taxed in the same way as for income
tax when the options are utilised and social costs for SEB will be payable at
that juncture. Allocation of employee options has been implemented to replace
the value of former corresponding bonus systems and similar forms of
remuneration.

More information on the staff option programme:

Each employee option entitles the holder to acquire one SEB series-A share at a
price of SEK 91.50. The price of acquisition of the SEB share is calculated at
110 per cent of the average stock market price during the fortnight following
presentation of the annual report of SEB on 15 February. Utilisation of employee
options may only take place between the years 2003 - 2007; i.e. utilisation of
the options is frozen for the three years immediately following the options
having been issued.

In order to secure SEB against the effect that share-price increases might have
upon employee options, the options, including social costs, have been hedged by
means of a third-party derivative-contract. By means of this the costs for SEB
are limited as regards share-price increases as opposed to the difference
between interest costs and dividends for those underlying shares in the
derivative-contract at the same time as there is a certain exposure against an
eventual drop in share prices. Distribution of the options will be taken up in
the annual report.


For further information, please contact: 

Anders Rydin, Chief Financial Officer (elect)
Telephone: +46 8 763 82 09
Boo Ehlin, Head of External Communications
Telephone: +46 8 763 85 77 or +46 70 763 85 77

END
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